Figures released by HM Revenue and Customs show that inheritance tax receipts hit £5.7 billion in the eight months from April to November 2024.
This is £600 million higher than the same eight months last year and continues the upward trajectory over the last two decades. Last full tax year inheritance tax raised £7.499 billion and currently just one in 20 estates is liable but government estimates suggest that this will increase to one in ten estates by 2030.
Nicholas Hyett, Investment Manager at Wealth Club says: “Inheritance tax continues to be the gift that keeps on giving, at least as far as the government is concerned.
“Yet again HMRC is increasing the amount that it’s milking from the estates of the recently deceased. Decades of rising property prices have been a major driver, pushing estates above frozen nil rate bands, and from April 2027 pension pots will fall into the taxman’s net as well meaning even more families are dragged into paying this most hated of taxes.
“Nor is that it.
“Farmers are already in uproar about the new Tractor tax, and removing IHT relief on familiy businesses could mean the final nail in the coffin for businesses that would otherwise have been passed on through many generations. These changes will harm many, many businesses and do not reflect the governments objectives to get the economy moving.
“All governments need to balance short and long term priorities. Short term financial gain may add pounds in the pocket now, but could easily lead to long term pain if people are put off saving to support themselves in retirement and businesses decide not to invest or shut up shop altogether.”
This article is taken from Landlord Today